TaxTMI 
TaxTMI 
2022 (4) TMI 154
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.... 73/CIT(A)-23/Kol/2015-16 and 235/CIT(A)-25/2014-15 both dated 14-05-2019 for AY 2012-13 against the assessment orders dated 25-03-2015 and 14.08.2014 respectively, passed by ITO, Exemption, Ward-1(4), Kolkata and ADIT(E)-II, Kolkata respectively [hereinafter referred to as the 'Ld. AO] u/s. 143(3)//11/10(23C)(vi) of the Income-tax Act, 1961 (hereinafter referred to as the 'Act'). Since the issue involved is common in both the appeals, we dispose of both the appeals by this consolidated order for the sake of convenience. 2. We noted from the grounds of appeal as well as from the order of the Ld. CIT(A) that he despite allowing the claim of depreciation made by the assessee, gave a direction which was not a matter of dispute in ....
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....ation Poona [2018] 89 taxmann.com 127 (SC). The finding given by the Ld. CIT(A) is reproduced as under:- "In view of above, the claim of depreciation even if assets were purchased from surplus fund of the trust and claimed as depreciation, the claim is to be allowed. The appeal on this ground is hereby allowed. However, it is pertinent to mention here that the depreciation is notional expenditure and for computing accumulation in 15% it has to be excluded from the gross receipt. The appeal of the assessee is allowed." [emphasis supplied by us] 6. From the above finding given by the Ld. CIT(A), we note that the Ld. CIT(A) had allowed the claim of depreciation towards application of income by the assessee. However, while giving the said f....
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....come for charitable purposes under Section 11(1)(a) of the Act. The view taken by the Assessing Officer in disallowing the depreciation which was claimed under Section 32 of the Act was that once the capital expenditure is treated as application of income for charitable purposes, the assessees had virtually enjoyed a 100 per cent write off of the cost of assets and, therefore, the grant of depreciation would amount to giving double benefit to the assessee. Though it appears that in most of these cases, the CIT (Appeals) had affirmed the view, but the ITAT reversed the same and the High Courts have accepted the decision of the ITAT thereby dismissing the appeals of the Income Tax Department. From the judgments of the High Courts, it can be d....
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....charitable or religious purposes and it also provides for application and accumulation of income. On the other hand, section 28 of the Income-tax Act deals with chargeability of income from profits and gains of business and section 29 provides that income from profits and gains of business shall be computed in accordance with section 30 to section 43C. That, section 32(1) of the Act provides for depreciation in respect of building, plant and machinery owned by the assessee and used for business purposes. It further provides for deduction subject to section 34. In that matter also, a similar argument, as in the present case, was advanced on behalf of the revenue, namely, that depreciation can be allowed as deduction only under section 32 of ....
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....t case, the facts were as follows: The assessee was the Trust. It derived its income from depreciable assets. The assessee took into account depreciation on those assets in computing the income of the Trust. The ITO held that depreciation could not be taken into account because, full capital expenditure had been allowed in the year of acquisition of the assets. The assessee went in appeal before the Assistant Appellate Commissioner. The Appeal was rejected. The Tribunal, however, took the view that when the ITO stated that full expenditure had been allowed in the year of acquisition of the assets, what he really meant was that the amount spent on acquiring those assets had been treated as 'application of income' of the Trust in the ....